A demand function depicts how consumer demand for a product varies with
A)income.
B)the cost of raw materials.
C)the price of oil.
D)quantity of goods available in the market.

Question

Quizplus · Accepted Answer

A demand function typically includes income as one of the variables as it affects a consumer's ability and willingness to purchase a product. The cost of raw materials and the price of oil may affect the cost of producing the product but do not necessarily impact consumer demand directly. The quantity of goods available in the market could potentially affect demand, but it is often accounted for as a factor in determining price, which is also included in the demand function.

A Demand Function Depicts How Consumer Demand for a Product